<u>Solution and explanantion</u>
<u>Answer for Q7</u> - Debit balance of $1,370
Cash has a debit normal balance.
Practically speaking the cash balance will be credit only if cash is negative which can never happen.
<u>Answer for Q8</u> - Credit balance of $1500
All equity accounts have credit normal balance except withdrawal or dividend accounts.
<u>Answer for Q9</u> - Credit balance of $770
All liabilities have credit normal balance.
<u>Answer for Q10 </u>- $5000
<u>Working
</u>
Trial balance
Debit Credit
Cash $1,370.00
Accounts receivable $ 1,600.00
Office equipment $ 900.00
Benson withdrawal $ 500.00
Benson capital $ 1,500.00
Accounts payable $ 770.00
Salaries expense $ 630.00
Service revenue $ 2,730.00
$ 5,000.00 $ 5,000.00
